While the two sides did not disclose a reason for the parting of ways, the announcement comes shortly before Metal Sky’s extension meeting, scheduled for October 30. The SPAC is currently facing a completion deadline of November 3, 2023, but is expecting to gain shareholder approval to extend this until August 5, 2024.
Metal Sky originally raised around $115 million in its March 2022 IPO. However, it only brought $56.9 million into the deal through its current trust after seeing 51.18% redemptions in a January meeting.
Aside from going into a shareholder meeting with 51% of the trust already redeemed, at issue could have been the crypto market in general or the difficulty securing additional capital. The parties noted at deal announcement that they would make commercially reasonable efforts to secure PIPE financing, but had not made any financing announcements.
Metal Sky initially announced its $350 million business combination with Future Dao in April. Singapore-based Future Dao is an emerging blockchain technology company focused on Bitcoin mining and the provision of blockchain technology services after listing.